The National Economic and Social Development Board (NESDB) today lowered the country’s economic growth this year to 3% from its earlier projection of 3.8-4% growth.

It attributed the low growth to lower than target of exports and car production which was below its target, and also the government investment projects which did  not meet its schedules and targets.

Also a concern about the current political turmoil could affect the tourism industry was another factor that brought the expected growth down, it said.

GDP in the third quarter of 2013 increased by 2.7%, a slight slowdown from a 2.9% rise in the previous quarter. This was a result of deceleration in non-agricultural sector and a decline in agricultural sector. On domestic expenditure, household consumption and investment decreased by 1.2% and 6.5%, respectively. In contrast, government  consumption and net exports of goods and services grew by 7.4% and 18.6%, respectively. Also, inventories had run down in this quarter. After seasonal adjustment, GDP on the quarter-by-quarter basis increased by 1.3%. GDP in the first nine months of 2013 grew by 3.7%.

Arkhom Termpittayphaisith, secretary-general of the think tank, on Monday released the third-quarter economic indicators, which showed growth of only 2.7 per cent against market expectation of 2.9 per cent. This forced the NESDB to revise downward the annualised economic projection from a range of 3.8-4.3 per cent, to only 3 per cent.

He attributed the low quarterly figure mainly to a decline in domestic consumption and private investment.

The Thai economy expanded 2.8 per cent in the second quarter.

A sharp plunge in exports, which generate about 70 per cent of Thailand’s GDP, has been a key reason for the lower growth this year.

HSBC earlier expected Thailand’s exports to contract 2 per cent this year.

About the author


Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

How will emerging markets benefit from new carbon trading rules?

Proponents say that carbon trading will ultimately increase investment in environmentally friendly solutions, as the price placed on carbon makes fossil-fuel projects less competitive, while at the same time incentivising low-carbon energy sources such as wind and solar.

FDI Drive Thailand’s Investment Up 59% says BOI

Japan once again topped the list of FDI source countries with a combined investment value of 80.7 billion baht for 178 projects, followed by China with 38.6 billion baht in investment pledges for 112 projects, and Singapore with 29.7 billion baht for 96 projects.

ESG Trends 2021: Rise of Green Finance

In a year in which significant political efforts have been made to speed up the energy transition, 2021 has also been record-breaking for green finance, as governments, international institutions and lenders alike seek to support the shift towards renewables.